The Australian dollar traded a touch higher against the US dollar during this past week, but still trading below an important resistance area around the 0.9360-80 levels. I think until the pair is trading below the mentioned resistance zone, then selling rallies might be a good option in the short term.
There is a bearish trend line forming on the 4 hour chart, which is holding the upside in the pair. There is also a resistance around the 0.9350 level. So, if the pair moves a bit higher from the current levels, trades closer to the mentioned resistance area and forms a bearish divergence, then we can enter into a sell trade.
Initial target should be around the 0.9280 level, and final target could be around the 0.9240 level. Stop should be placed above the 0.9390 level.
Major events scheduled in the upcoming week
The highlight of this week was not the US dollar it was the British pound, which tumbled against most major currencies. The BOE inflation report caused the downside in the British pound. The GBPUSD pair fell more than 200 pips during this past week. The US dollar was also seen trading a touch lower, as the Euro and the New Zealand dollar managed to gain bids against the US dollar. There was no major market moving event scheduled in the US, which mostly caused a range move in most of the pairs, as the EURUSD continued to trade in a 50 pips range.
Let us look at all major events lined up in the upcoming week.
Sunday – No economic release.
Monday – New Zealand PPI data.
Tuesday – UK CPI data, US CPI data, US building permits figure, US housing starts data and Japanese trade balance data.
Wednesday –German PPI data and Chinese HSBC manufacturing PMI.
Thursday – German manufacturing PMI, French manufacturing PMI, Euro Zone manufacturing PMI, UK retail sales data, US initial jobless claims data, US existing home sales data and Philadelphia fed manufacturing index.
Friday –Canadian CPI and retail sales data.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: EURUSD, EURGBP, GBPCHF, EURCHF, USDCAD, EURCAD, AUDCAD, NZDUSD, AUDNSD, EURJPY, GBPJPY, OIL, WHEAT, CORN and INDICES.
Get it HERE: Vladimir’s Markets Forecast
Happy trading friends!
